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Thai court hears final arguments in PM's party case

THAILAND'S Constitutional Court began hearing the final arguments today in an electoral funding case against the ruling Democrat Party that could result in its dissolution and the removal of the prime minister.

The court, whose proceedings could take several hours, has not set a date for the verdict, but local financial markets were cautious as a ruling could come soon after the closing statements.

The verdict could complicate a political crisis studded with street protests, party dissolutions and military intervention.

Thailand's oldest party is accused of misusing an election grant from the state Election Commission before a 2005 poll.

The case is the first of two against the conservative, pro-establishment party, which came to power after a controversial parliamentary vote in 2008 that followed a court order to dissolve a ruling party allied with former premier Thaksin Shinawatra.

The toppling of Thaksin in a 2006 military coup, plus the dissolution by the courts of two parties allied with him and the "red shirt" movement, widened bitter political divisions in Southeast Asia's second-biggest economy.

Some analysts felt it was unlikely the case would end with both the dissolution of the Democrat Party and a blanket political ban on executives of the party of Prime Minister Abhisit Vejjajiva.

"There are several legal provisions that could be considered and several possible outcomes but it would be quite extraordinary for it to go that far," said Karn Yuenyong, director of the Siam Intelligence Unit, an independent think tank.

The case comes at a difficult time for the Oxford-educated Abhisit, whose coalition government has been weakened by infighting.

A verdict against Abhisit would be a setback for the party's powerful backers in the military and royalist elite, but analysts say contingency plans are probably in place to ensure some sort of continuity.

As many as 31 executives could be banned for five years, although the only high-profile casualty would be Abhisit, who was the party's deputy leader at the time of the funding incident.

If the party is dissolved, the bulk of its parliamentarians could form a new party or switch to another they may have already registered in anticipation of such a verdict.

If Abhisit is disqualified along with other executives, a caretaker premier would probably fill in until the new Democrat incarnation could propose a new candidate to parliament.

On the other hand, a complete acquittal could bring a backlash from the Democrats' opponents in the "red shirt" movement. Protracted street protests by this group earlier this year ended in a bloody military crackdown in May.

Abhisit has repeatedly said he would call elections next year, before his term expires.



 

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